How does a permanent cut in taxes affect the current account


Problem

How does a permanent cut in taxes affect the current account? What about a permanent increase in government spending? Reread the first Case Study and see if your answer accurately reflects the U.S. experience in the early 1980s.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: How does a permanent cut in taxes affect the current account
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